Asked by Alexis Rampey on Jun 16, 2024
Verified
A minimum wage law creates a price (or wage) _____ and a labor _____.
A) floor,shortage
B) floor,surplus
C) ceiling,shortage
D) ceiling,surplus
Minimum Wage Law
Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.
Price
The amount of money expected, required, or given in payment for something. It serves as a signal between buyers and sellers in a market.
Labor
The human effort, both physical and mental, used in the production of goods and services.
- Learn about the consequences that minimum wage legislation has on employment figures.
Verified Answer
SA
Stacey AmadorJun 19, 2024
Final Answer :
B
Explanation :
A minimum wage law sets a lower limit on the wage rate, which is a price floor. This can lead to a labor surplus, as employers demand less labor at the higher wage than workers are willing to supply.
Learning Objectives
- Learn about the consequences that minimum wage legislation has on employment figures.